Is there ever a ‘right’ time to start a business? If you’ve
been considering franchise opportunities, recent world events and headlines may
be giving you pause. But we know from experience that challenging times are
often short-lived. Dips lead to much longer, prosperous expansions. Uncertain
times don’t have to be a threat, and in many cases, present opportunities. And
when starting a franchise business, there’s a bit of good news: Franchises can
be successfully launched in all types of economies. We look at some factors in
your favor and how
to choose a strong franchise that will buoy you up – no matter what the
A Growing Franchise Industry
The franchise industry remains incredibly strong and has
been growing year-over-year for a decade. According to the International
Franchise Association’s Franchise Business Economic Outlook, the number of
U.S. franchises is expected to increase by 1.5% and add 232,000 jobs in 2020.
While this projected growth rate is lower than in previous years, it’s
nonetheless growth despite an uncertain economy. The Gross Domestic Product
(GDP) of the franchise industry is also forecasted to grow by 4.6% to nearly
$495 billion, outpacing the GDP of the U.S. economy.
Review Sector Performance During Up and Down Economies
When considering your franchise business options, it’s important to look at the performance for the individual sector during up and down economies. For example, at BirthdayPak, a large percentage of our business partners are restaurants. The percentage of Americans dining out at the height of the recession in 2008 was 60%. In addition, the restaurant industry contributes 4% to the GDP. These facts show that restaurant dining has been very stable during good and challenging economic times.
Americans love eating out for convenience and social
article suggests that dining out is prioritized over other recreational
activities and travel when discretionary income is limited. Also, the National
Restaurant Association’s 2020
State of the Restaurant Industry Report details high pent-up demand for
restaurants and expects a 4% increase this year.
An Ideal Franchise Business Model: What to Look for
Consider the many benefits of owning a franchise during any
type of economy: A
proven system, brand
recognition, and training
and support. In short, franchises are in business because they set
franchise owners up for success from the beginning with very little ramp up
time. In addition, home-based and mobile franchises like BirthdayPak have very
low overhead costs, which save a lot compared to operating a traditional
brick-and-mortar franchise. They also offer scheduling
flexibility around your family life. Review
the franchise models and pros and cons of each when considering your lifestyle.
BirthdayPak: A Proven Driver for Increasing Traffic to
BirthdayPak was born from the idea of “celebrating life’s
memorable moments” and centers around women dining out for their birthday. Tasteful
gifting is a market differentiator for small businesses and creates memorable
experiences for our community. Once this challenging time is behind us and
restaurants can fully open their doors again to the public, BirthdayPak will
help new and repeat business flow in. If you want to become
an entrepreneur in 2020, get started on the path to ownership.
To find out what BirthdayPak has to offer, call 1-888-680-7554 or schedule a time to
Cincinnati might very well be one of the most underrated cities in the country. But it’s steadily gaining population growth and is the economic powerhouse of the Midwest. This bustling metro area has much to offer with vibrant communities, a low cost of living, healthy job market and a great restaurant scene. In fact, Cincinnati placed on the 2019 U.S. News & World Report Best Places to Live rankings. See why Cincinnati is not just a great place to live, but also a great city to be your own boss with a top-rated franchise opportunity – with none other than BirthdayPak!
Cincinnati: A City on the Rise
Cincinnati is making a comeback. Greater Cincinnati has the fastest-growing economy in the Midwest at $138 billion in 2017, an increase of nearly 20% in the last five years. The Cincinnati area is even beating the U.S. economic growth rate. In terms of population, Cincinnati is the 29th largest metro area in the country and the largest in Ohio. The area’s population growth has been steadily increasing over the last decade, both in the city and suburbs.
Cincinnati is home to eight
Fortune 500 companies including Procter & Gamble, Kroger Corporation,
Macy’s and Fifth Third Bank. Jobs are plentiful in Cincinnati and Fortune
ranked the area #8 out of 25 of the best cities to find a job. It’s also
been listed as a best
city for Millennials, citing a strong paycheck and above average number of
Cincinnati Is One of the
Best Places to Live
addition to ranking #39 out of 125 for the
best places to live in the
country, it’s also one of the most affordable. Cincinnati has been ranked #10 in the 2019 U.S.
News & World Report 25 Best Affordable Places to Live in the
U.S. This means cost of living and housing costs are low, providing higher
discretionary income for leisure items such as dining out.
Cincinnati: A Food Lover’s Paradise
From high-end eating establishments to casual dining, there is something for everyone in Cincinnati. In fact, three Cincinnati restaurants landed on OpenTable’s Top 100 Restaurants in America for 2017 list. WalletHub named it #1 best food city in Ohio and #22 in America. It’s been recognized as an incredible food city in Food & Wine, and the Over-the-Rhine district has been described as “one of the country’s most promising food scenes.”
Restaurants Boost the Ohio, Cincinnati Metro Economies
While a variety of industries make up the fabric of the economy, the restaurant industry always has a significant impact. Ohio has more than 22,500 eating and drinking establishments that brought in estimated sales of $24.2 billion in 2018. Restaurant and food service jobs amount to 10% of employment with 585,000 jobs in 2019. That’s expected to grow by 9.1% by 2029. With Cincinnati as a major metro area and culinary center in Ohio, this industry in particular is a boon to the local economy.
Be Your Own Boss and Bring BirthdayPak to Cincinnati,
The award-winning restaurant scene in Cincinnati deserves an award-winning gifting program to further its incredible growth. BirthdayPak connects affluent women with an approaching birthday to upscale businesses that can provide a memorable celebration. It just needs the right franchise owner, a sales-driven entrepreneur in the Cincinnati market, to help local businesses succeed. For more information, contact us or call 1-888-680-7554.
It’s a new year and a new decade! Are you ready to start
2020 off right? Now is a great time to reflect on your successes and think
about changes you want to make this year and in the next 5-10 years. If you
want to become a business owner, take time to define goals that will set you up
for success this year. We provide tips to help you jumpstart the process and
pursue the goal of becoming an entrepreneur in 2020.
Think About Your End Goal
When thinking about starting a new business, it’s important to take a long-term view and know your end goal. It helps set the course for your new venture and gives you something to aspire to achieve. For example, do you want to start a business from scratch or are you considering a franchise? Do you want to enjoy a better work-life balance? Fulfill a life-long ambition or passion? Whatever your goal, keep it at the forefront as you explore your options and throughout the buying process.
Consider Your Skills and Passions
What are you good at or passionate about? Then sell it. At BirthdayPak, we often hear our franchise owners say they are “passionate about the product and helping businesses grow.” Most have sales backgrounds, and that’s a skill that can create a thriving business. But sales can be more than just products. It can be ideas, experiences, knowledge, talents or even a hobby. Think about the skills and passions you possess, then how you can sell them to build a business.
Connect with Other Like-Minded Entrepreneurs
Surround yourself with other successful entrepreneurs by attending networking events and establishing new connections on LinkedIn or through mutual colleagues. Their experience and knowledge can translate into actionable steps for you when starting your new business. They can also provide advice and insight to help you make the right decisions and set you up for success from the beginning. If you’re interested in a franchise, talk to a franchise consultant or other franchise owners.
Set Aside Time Each Day Working Toward Your New Business
Starting your own business means putting in the time to
build it. Spend at least an hour a day exploring your business idea or opportunities
and taking steps to make it a reality. Draft your business plan, build your website,
take a course, write a pitch letter or research franchise businesses that would
be a good fit. Create goals that can be accomplished within a certain
timeframe. You’ll have a lot to show for it after just a month of this
The Time Is Now to Start Your Entrepreneurial Journey Are you ready to set your entrepreneurial and business goals? Make 2020 your year to become an entrepreneur! Approach it with a lot of thought, a plan, research/due diligence and a network of support. Put in the work each day to build your foundation for success. If you would like to learn more about franchise ownership with BirthdayPak, start with these top 10 articles and schedule a time to connect.
Observances such as National Entrepreneur’s Day make us especially grateful for our wonderful team of entrepreneurial franchise owners and thousands of local business partners at BirthdayPak. Small businesses are the backbone of our communities, and we take every opportunity to recognize them. National Entrepreneur’s Day, this year on November 19, 2019, also allows us to promote entrepreneurship and inspire you to explore alternatives to a traditional 9-to-5 job. It’s a great time to think about becoming your own boss and the five ways that franchising helps entrepreneurs succeed.
Proven Business Model
The first way a franchise helps you succeed is by providing a proven business model. This includes a strategy, operational practices, marketing, branding and systems. Having a proven business model typically means the ramp up period to starting your business is shorter and the business is fairly turnkey.
Training, Resources & Support When You Need It
With a franchise, “you’re in business for yourself, but not by yourself.” Franchisors help set up franchise owners for success by providing comprehensive training, resources at the corporate level such as research and marketing, and ongoing support as needed. When you have questions or challenges, there is someone to turn to for assistance. These efforts make the learning curve and navigating a new market easier.
Lower Start Up Costs & Easier Financing
Franchising can make owning a business attainable in ways
that are more difficult when starting a new business. For example, some
franchises (such as BirthdayPak) have low franchise fees, low overhead costs (with
remote work) and no royalty fees. Financing is often easier to obtain since a
franchise is perceived as a less risky investment, especially if the franchise
Establishing brand recognition can take years for a new business. However, many franchises have the benefit of name recognition. A positive brand image can bring customers and profits more quickly. Strong brands demonstrate growth and are often recognized as a leader by external organizations.
What if you could never miss an important life event again? Entrepreneurs are often drawn to franchises because of the flexibility and work-life balance it provides. They can get the best of both worlds and achieve both career and personal goals. Working for yourself is hard work, but you can structure your schedule in a way that is effective for you.
The Proof Is in the Numbers
Still need convincing that franchises help entrepreneurs succeed? Just compare the success rate of startup businesses and franchises. IFA Educational Foundation conducted research and found that more than 90% of franchisees renew their agreements at the end of their contracts. FranNet also completed a survey with 1,260 new franchises from 2006-2010 and found 91% were still in business after two years and 85% after 5 years.
Contrast this to a report from the U.S. Bureau of Labor Statistics, and success rates are not nearly as high for startup businesses. Of small businesses that started in 2014, 70% were still in business after two years and just over half (56%) made it to their 5th year.
Invest in a Franchise That Is Invested in Your Success
Entrepreneurs, it’s your day! Start by exploring the many possibilities in franchising and consider how franchising improves the chances of owning a successful business for many entrepreneurs. However, not all franchises are created equal, so you’ll want to conduct due diligence to choose a franchise that will be a partner in your success. A growing national franchise such as BirthdayPak has a low initial investment, long list of awards and top-notch support.
When you invest in a franchise, you’re investing in a
“proven business model.” But what exactly does that mean, and does every
franchise have it? Can it be assumed that a well-established franchise has a
proven business model? It’s not always that simple, and not all franchises are
created equal. We examine the elements that form a proven business model and
set franchise owners up for their best chance at success.
Proven Track Record with Years of Growth and Success
A franchise with a proven business model has a business plan that has been proven time and again. The franchisor can show years of growth and the potential of your investment. Having years of experience typically means the franchise has worked out any kinks in the system so that you can replicate the success as quickly as possible. Much of this information will be revealed during the due diligence process and is available in the Franchise Disclosure Document.
Brand Success and Recognition
A strong brand presence and recognition as an industry leader is a characteristic of a franchise with a proven business model. This status is typically attached to established franchises and can bring customers and profits more quickly. But younger, emerging franchises should not be discounted in this area. If the emerging franchise has strong brand guidelines, a customer-centric approach and differentiates themselves well from the competition, they could be a strong brand in the making.
A Plan and Goals for a Sustainable Future
A vision, plan and goals keep a franchise focused so they can see ever greater success in the future. They have a comprehensive business and marketing plan, complete with a system and tools. This allows the franchise to keep all involved focused and accountable to execute on the goals and fulfill the vision. Successful franchises ensure that relevant information is communicated on a consistent basis, typically weekly, monthly or quarterly. After all, change is constant, and franchises have to be responsive and goals tweaked to stay current.
Comprehensive Training and Support
One thing is for certain: A franchise with a proven business model must be committed to support. Support can include materials, onboarding and training, and ongoing guidance. A knowledgeable corporate staff that is responsive and provides answers quickly is essential. A franchise with a proven system has that next level of support to depend on when challenging situations arise. It has the infrastructure in place to set goals, create plans and develop strategies with franchise owners.
A Positive Company Culture
While growth and success are the tangible outcome of a proven business model, the franchise’s culture is the all-important “behind the scenes” element. A positive company culture develops the brand and lays the foundation for the franchisor-franchisee relationship. When values and beliefs align, commitment to the goals takes hold and success begins.
Looking for a Franchise with a Proven Business Model?
You’ve Found One!
BirthdayPak not only has a proven business model, but a unique one! We send one million birthday wishes annually to women across the country through a one-of a kind gifting program. In turn, local businesses see increased sales with new and repeat business. This franchise opportunity opens up a path to success for franchise owners.
BirthdayPak has a proven business model and is available for expansion in these high-potential markets. We’re looking for sales-driven entrepreneurs who are passionate and ready to partner with us for success. For more information, contact us at 1-888-680-7554 or schedule a call.